China energy

UK, France and China ratify EDF’s Hinkley project

October 4th 2016 | China | Nuclear | Multiple companies

On September 29th France, China, and the UK, the stakeholders in the Hinkley Point C nuclear power plant, jointly approved the project's commencement, according to media reports. The £18bn (US$24bn) plant will be built in Somerset in the UK by Électricité de France SA, a French state-run electric utility, to be completed around 2025.

The UK's new government, led by Theresa May, allowed the project to proceed on September 15th following a review of its viability. The approval came amid a flood of controversy regarding the project's high costs and complex technology, as well as security concerns due to Chinese involvement, via a 33.5% stake held by state-owned China General Nuclear Power Corp.

Once finished, the facility is expected to supply close to 7% of the UK's energy requirements for 60 years. It is estimated that it will provide up to 26,000 jobs during its construction and operation. However, there has been criticism that the UK will offer above-market prices for the plant's output, while some senior EDF executives have quit over disagreements about the Hinkley project. According to an estimate by the UK government, the electricity from the Hinkley plant will cost British consumers up to £21bn in subsidies over a 35-year contractual period.

Owing to security worries, the UK now has the right to veto any attempt to sell EDF's controlling stake in the project before construction is completed.